1. Export expansion - FY25-26 export sales rose, with Europe performing better than expected; forex earnings reached ₹2,402.57 lakh vs ₹1,925.25 lakh. China + 1 sourcing and global supply-chain diversification give Indian manufacturers a long-term opening, and management names exports a key focus.
2. Domestic OEM growth - Higher domestic OEM demand drove FY25-26 revenue growth, with agricultural machinery demand staying strong. The company enters FY 2026-27 with a healthy order pipeline and plans to expand with existing customers while adding new ones.
3. Margin improvement target - Management targets a 10% net profit margin by FY 26-27, up from 7.62% in FY25-26. The plan runs through cost cuts, value engineering, supplier rationalization and a guided 10% productivity gain.
4. New product commercialization - Serial production for recently developed parts ramped up during FY25-26. Management is accelerating commercialization of products under development, including work tied to potential commercial-vehicle electrification.
5. Aftermarket via XLO Value - The company markets aftermarket products under the XLO Value trademark, leveraging the holding company's brand recognition. Rising aftermarket acceptance already contributed to FY25-26 growth, and the fragmented market favors established brands as customers seek reliable quality.
6. Automation and productivity - Management keeps investing in manufacturing capability, automation and quality systems. These initiatives target better capacity utilization and operating efficiency, supporting profitable growth.
7. Energy cost reduction - A new Sealed Quench Furnace for heat treatment - the highest energy-consuming department - will be considerably more efficient. Solar power is expected by end-FY 26-27 once consumption crosses the captive open-access threshold.